What has happened?
- US electric car giant Tesla finally made its entry in India and registered as a company in Karnataka’s Bengaluru, Prompting Chief Minister BS Yediyurappa to welcome CEO Elon Musk to the country and his state.
About the company
- The company was incorporated on 08 January 2021 and is classified as a private subsidiary of a foreign company.
- It’s authorized share capital is INR 00 lakh and the total paid-up capital is INR 1.00 lakh.
- The company has currently appointed three directors – David Jon Feinstein, Vaibhav Taneja and Venkatrangam Sreeram.
But why R&D unit in Bengaluru?
- A team from Tesla had initial discussions with Karnataka government officials in September,
- The state had said that the company had shown interest in investing in a research and innovation
- A month later, the Maharashtra government, too, held talks with Tesla.
- “Since Bengaluru is also home to space and aerospace technology, this can lead to several other collaborations in terms of research and production of various consumer related products,”
- Gaurav Gupta, additional chief secretary in the state industries department.
- Karnataka is the first state to unveil an electric vehicles policy, hoping to generate investments of Rs 31,000 crore in EV R&D and manufacturing.
- Since then, 11 states including Gujarat, Delhi, Maharashtra, Tamil Nadu, Telangana and Andhra Pradesh have brought out their own EV policies.
- Bengaluru is also home to promising EV startups in the country such as Ola Electric, Sun Mobility and Ather Energy. Ola signed a deal to set up its scooter making facility in Tamil Nadu
- Tesla had planned its India entry in 2016 but the company never went ahead with its operations post the announcement,
- Apparently due to the changing import policies and dismal infrastructure for electric vehicles.
- The company had even accepted orders from Indian customers.
- Last month, Mr Musk said, “Next year for sure” on Twitter in reply to a post with a photograph of a
- T-shirt with the message: “India wants Tesla”.
- Mr Gadkari, the Transport Minister, had in December said the Tesla Model 3 will be launched first in India.
- Model 3, the cheapest among Tesla vehicles, with prices starting at roughly ₹ 55 lakhs, will be the first model to be launched, according to a report.
- The bookings will apparently start in January.
But why tesla is now entering?
- Tesla’s entry into India comes at a time when Prime Minister Narendra Modi is increasingly focusing to promote the use of electric vehicles.
- The past couple of years have seen an influx of privately imported Tesla vehicles in the country.
- The infrastructure is on the rise as well which may have prompted the company to look at the potential the market has to offer.
Operations in other states also
- The company has been talking to as many as five state governments to start operations in India.
- In the last few months, the company has various discussions with Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu.
What is the reason behind sudden wealth?
- An unprecedented rally in the Tesla stock, which has surged over 740% in 2020, is the primary reason behind the blistering pace at which Musk’s net worth increased.
- While the pandemic-hit 2020 has been disastrous, the personal wealth of billionaires — especially tech entrepreneurs — have grown handsomely.
- Musk’s good fortune started in 2020 and his net worth has surged by over $150 billion in the last 12 months
Q) Which country has the most electric vehicle per population?